Blue Cities and States Need a New Deal with Public-Sector Unions

Blue cities and states face large budget gaps and high costs of living that make delivering reliable public services harder. Mayor Zohran Mamdani pledged a government “where excellence is no longer the exception,” but must close a $5.4 billion deficit in a state where the governor rejects higher taxes on the rich.

To meet those demands, governors and mayors will likely have to press unions representing teachers, police and transit workers for changes that reduce costs and improve performance. Much of the fiscal strain stems from pensions and higher public-sector pay. Politicians often favor pensions because they shift costs to future taxpayers, and unions rightly fight for strong benefits.

But those choices have consequences: a recent Illinois law will cost Chicago $60 million next year and could add about $11 billion over three decades; Los Angeles raises backed by unions helped create a $1 billion budget shortfall and prompted reduced paid hours for city employees.

United States, Chicago; Los Angeles; Illinois

public-sector unions, blue cities, budget deficit, pensions, teachers unions, police unions, transit workers, zohran mamdani, chicago, los angeles